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EUROBIT- ITI - JEIDA

Gll Tripartite Preparatory Meeting in Brussels

on January 26/27, 1995

The three associations recommend that for the GII to be successfully developed, governments and the private sector should work together and follow the recommendations in the following six areas:

• Interoperability
• Privacy and trust in an information society
• Intellectual property rights
• Universal access
• Access to R&D and new applications
• Market access

European Association of Manufacturers of Business Machines and Information Technology Industry (EUROBIT)

Information Technology Industry Council (ITI)

Japan Electronic Industry Development Association (JEIDA)

INTRODUCTION

The information technology (IT) industry believes that the private sector - the providers of the information technology products and services - will drive the development of the GII. The IT industry also believes that governments around the world can most effectively advance this development by primarily working toward increasing access to markets for critical GII products and services.

The IT industry fully supports GII policies that adhere to the following principles: private sector leadership driven by competition; global interoperability; privacy and data security; achievable international access; intellectual property rights protection: international cooperation in research and development (R&D) and in new applications and open access to government-funded R&D programs; removal of barriers to trade and investment; and support for GII projects in developing countries.

Global policies guided by these principles will stimulate competition and investment, and ultimately provide a wide variety of products and services to users of the information infrastructure world-wide.

The Global Information Infrastructure (GII) is more than a complex network of networks, connecting national information infrastructure and other regional and international networks; it is a structure integrating six elements:

• the communications infrastructure (telephone, cable and wireless systems, etc.;
• the computers and appliances that process information, and allow people to physically interface with it;
• the software and applications that enable people to use information;
• content or information (whether audio, video, text, images);
• the people and companies who develop, manufacture, sell and service the networks; and
• the people and organizations who will make use of the GII.

The private sector and the competitive marketplace must be the driving force for the implementation for GII. Additionally, governments should encourage the use of the GII through the adoption of legislative and procedural requirements appropriate to the age of the information society. Support should be given for GII in developing countries.

The critical public policy objective of fostering an open, competitive marketplace at all levels (national, regional and international) is the conditio sine qua non of its success. Above all else, what governments can do to advance GII is to work toward increasing open access to all global markets.

The IT industry believes that this objective can be met, and the GII successfully developed, if governments and the private sector adhere to the recommendations on the following six major issues:

1. Interoperability
2. Privacy and Trust in an Information Society
3. Intellectual Property Rights
4. Universal Access
5. Access to R&D and New Applications
6. Market Access

1. INTEROPERABILITY

1.1 A Primary GII Goal

Interoperability will promote competitive markets for GII systems, products and services and stimulate innovation and responsiveness to the marketplace, resulting in increased customer choice, lower prices, and accessibility for all individuals and institutions.

The key to interoperability is the development and implementation of open interfaces. An interface is open if its specifications are readily and non-discriminatorily available to all vendors, service providers, and users, and if such specifications are revised only with timely notice and public process. Interface specifications provide the information and technical parameters for how systems, products and services communicate with each other, but should be limited to that information necessary to achieve interoperability, allowing suppliers to develop different implementations with distinguishing characteristics.

Thousands of interfaces, both open and closed, exist in today's Information Infrastructure. However, a much smaller set of these interfaces, located at key "high leverage" points, is critical to establish the future GII. These critical interfaces enable and catalyze the development of new systems, products and services built and operated by multiple, competing providers and users. Conversely, closed critical interfaces can also hinder competition, growth, and open access. Interfaces critical to the interoperability of the GII must be open, thereby allowing manufacturers and vendors to provide equipment and software to meet the interface specifications.

1.2 Standards: The key to open interfaces

Other standards may also evolve from industry alliances, coalitions, and consortia whose specifications meet the requirements of openness. Thus, formal standards and other standards may compete in the marketplace for acceptance. Competition in the marketplace among all standards is a positive force for the GII and should be welcomed with the understanding that the other standards should eventually be formally recognized. Consortia should be strongly encouraged to cooper ate with international standards organizations to transpose their specifications into international standards.

Competitive forces allow customers to choose between multiple suppliers, providing a clear and strong incentive for suppliers to define open interfaces and to use voluntary consensus standards. Interface standards must be developed in a manner which leaves room for competition and innovation in the marketplace. In today's global economy, internationally recognized standards are of paramount importance. Furthermore, international standards, whether developed by formal standards bodies or industry alliances, ultimately offer greater compatibility and economic benefits by reducing barriers to trade, lowering product development costs, and improving the global economy.

Addressing the full range of international standards required by the GII assumes the participation of all nations in international bodies such as the International Telecommunications Union (ITU), the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC) and the Joint Technical Committee 1 (JTC--1)[1]. All of these bodies must be an integral part of the process to help ensure that standards for critical GII interfaces are adopted on a global level. Standards mandated by any one national or regional government are untenable in today's international marketplace.

Interoperability in the GII will depend on systems, products and services working together by leveraging the power of international standards. The marketplace will in fact demand that systems, products and services work together by adhering to international standards. As a result of these competitive forces, Supplier's Declarations should be an accepted means for suppliers to declare conformance to standards and inter operability if they are based on internationally agreed criteria. In addition, standards organizations should be encouraged to address aspects of interoperability within the standards development processes. Any conformity or interoperability testing should be voluntary and market driven.

Acceptable private-sector-led voluntary consensus standards development processes must provide for non-discriminatory access to standard interface specifications. When a proprietary technology is incorporated into a standard, the developer must voluntarily agree to license the technology on reasonable terms and conditions, demonstrably free of discrimination.

1.3 Government roles

While the development of standards should be both led by and implemented by industry, governments should play a role in supporting such activities. We believe that governments' role should be to:

• Advocate the importance and advantage of interoperable systems, products and services in the GII, based on the existing private sector-led, voluntary consensus international standards process.
• Participate in the private sector-led standards processes as a user of information technology, and use such inter face standards and specifications in government procurements.
• Recognize the importance of test beds in advancing GII interoperability and promote establishment of such environments through industry-led proj~cts.

1.4 Recommendations

• The private sector should continue to lead and develop international standards and encourage more rapid agreement on the industry identified most critical interface standards
• The private sector involvement in standard-oriented consortia should be supported but encouraged to formally link their outputs and recommendations to the formal international standards bodies
• Both private sector and governments must continue to sup port innovation, the driver of the GII evolution, by supporting the inclusion of proprietary technology in standards, subject to developer's voluntary licensing on reasonable terms and conditions, demonstrably free of discrimination
• Governments have an important role to play in interoperability of the GII by:
  • Being an advocate for the importance and advantages of interoperability
  • Participating in private-sector led standards processes as a user
  • Using open international standards and specifications in government procurements
  • Recognizing the importance of test beds in advancing GII interoperability

2. PRIVACY AND TRUST IN AN INFORMATION SOCIETY

Without well-enforced privacy rules, the Information Society could be perceived as threatening and intrusive, denying a basic human requirement. Business must also have confidence that its commercial assets and communications cannot be unreasonably threatened or compromised.

For the Global Information Infrastructure to develop success fully while providing privacy and trust, we urge government action in four areas:

• Protection of personal data
• Enabling of electronic commerce
• Trustworthiness and effectiveness of security countermeasures
• Availability of cryptographic technology

2.1 Protection of personal data

In the mid-1970's, lawmakers in some countries recognized that information technology could lead to invasions of privacy and that this should not be regarded as simply a national concern. They realized that the economic and social relationship of many countries were closer than before, and that the emergence of a global market led to an increased movement of information across borders. Since information is often of a personal nature, and based on the premise that the needs of the market should not undermine the legal protection of citizens, it was deemed necessary to regulate the use of personal data through domestic legislation and the adoption of voluntary codes based upon guidelines prepared by the Organization for Economic Cooperation and Development (OECD). The data protection laws of some countries prohibit or restrict the transmission of personal information to other countries.

Provided the necessary safeguards are in place, however, restrictions in the name of privacy must not be allowed to prevent legitimate business to be conducted electronically domestically or across borders.

Because of the global nature of the information infrastructure, the problem is clearly world-wide. Since different countries have taken different approaches, there is a strong need for harmonisation.

The OECD guidelines governing the protection of privacy and transborder flows of personal data have wide support and should form the basis for such harmonisation.

2.2 Enabling of electronic commerce

Businesses are increasingly using electronic messaging, networked computers, and information systems for conducting business that was once transacted solely on paper or by telephone. Electronic commerce is rapid and accurate and can reduce the cost of doing business. Electronic mail and standardized electronic business forms are transforming the way that business is transacted, and causing firms to restructure operations.

In the Global Information Infrastructure, data and information will flow freely among international trading partners as electronic commerce displaces the traditional forms of business transaction.

While electronic computer messaging technology allows many business transactions to be handled in a paperless fashion, the law of contract and commerce is still based on a paper system paradigm. As a result, businesses confront new legal issues as they implement electronic trading systems. Among these are questions regarding contract writing requirements, legally binding signatures, and-the use of electronic communications as evidence of a contract.

For the Global Information Infrastructure to be used for commercial purposes, electronic transactions must be legally recognized as valid. The requirements that must be dealt with are:

• Proof of the identity of the originator of a transaction;
• Proof of the right of the originator to commit to the transaction;
• Proof that the transaction content is received as sent, and has been received by the intended addressee;
• Resolution of disputes between trading partners, when necessary;
• Assurance that the transaction is well-formed and
• Prevention of disclosure of the transaction to unauthorized persons.

2.3 Trustworthiness and effectiveness of security countermeasures

In order to combat the problems of hackers and computer viruses, international efforts should be made for establishing framework of information exchange and co-ordinated measures.

2.4 Availability of cryptographic technology

The issue for governments is that modern encryption technology is effectively uncrackable. There is a genuine need for law enforcement agencies, legally and under warrant, to be able to intercept communications. Defence intelligence also depends on an ability to read enemy signals. If interception yields only incomprehensible encrypted data, there is a real impact on governments' ability to fight crime and to defend citizens. For that reason, national governments subject encryption technology to strict controls. Most nations control export of such technology. Some countries control import and use as well. We are concerned that, far from the controls being relaxed, current trends are towards tightening them up. If that is the case, then the new industrial revolution will not deliver its promised benefits. While some cryptographic tools are readily available to virtually any individual or enterprise that wants them, legal restrictions on the export, import and use of such tools will impact only lawabiding users.

We do of course recognise the legitimate needs of ~ national authorities to enforce the rule of law, and to maintain national security, but individuals and businesses have needs too - the need for privacy, and the need to operate on a basis of trust - and unless those needs are met the Information Society may not happen.

We believe that cryptographic mechanisms for use by public services (for purposes other than defence and diplomacy), individuals, small and medium-sized enterprises and multi-national corporations must:

• Be based on the needs of users and providers as deter mined by the open market;
• Provide a level of privacy and trust sufficient to protect unclassified information;
• Be published and unclassified, so that their effectiveness can be open to public scrutiny; and
• If patented, be available under fair and reasonable conditions on a non-discriminatory basis.

2.5 Recommendations

• that the OECD guidelines governing the protection of privacy and transborder flows of personal data be used as a common world-wide basis for private and government codes of conduct on personal data protection in the Global Information Infrastructure.

• that world-wide agreement be reached on the legal aspects of electronic transactions in the Global Information Infrastructure, and on the use of electronic signatures for the resolution of disputes.

• Cost-effective methods for establishing the trust worthiness of products and systems and the effectiveness of security countermeasures;
• Security guidelines for the design and operation of secure systems; and
• The establishment of a global system of information exchange about security problems and countermeasures.

• That governments, industry and users must agree on the cryptographic techniques to be used in the Global Information Infrastructure and on a procedure for verifying that products conform to the techniques so agreed;
• That the agreed techniques and the agreed verification procedures must be made public;
• That the agreed techniques must be based on private sector led, voluntary consensus international standards;
• That products implementing the agreed techniques should not be subject to import controls, restrictions on use within the law, or restrictive licensing;
• That products implementing the agreed techniques should be exportable to all countries, except those which are subject to UN embargo; and
• That users and suppliers of products implementing the agreed techniques should be free to make technical and economic choices about modes of implementation and operation, including a choice between implementation in hardware or software where relevant.

3. INTELLECTUAL PROPERTY RIGHTS

Most importantly, adequate protection of intellectual property rights is indispensable to foster the widespread use of the GII which will in turn engender further expansion of the network. The existing international property law regime, con firmed by the GATT TRIPS Agreement, can well serve the needs of the GII. Given the substantial progress made in recent years in achieving an international consensus concerning the scope and enforcement of intellectual property rights as witnessed by the GATT TRIPS Agreement, we strongly encourage individual Governments to seek through multilateral negotiations further harmonization of the protection of intellectual property rights in order to realize the full potential of the GII.

To ensure the success of the GII, the following issues in the field of intellectual property rights should be addressed:

• Adequate Protection of Intellectual Property Rights
• Appropriate Balancing of the Rights and Interests Among Participants in the GII
• Global Harmonization

3.1 Adequate Protection of Intellectual Property Rights

It also is anticipated that new methods for utilizing content will arise as the users access and process content obtained through the information infrastructure. Such an environment raises concerns for the owners of intellectual property rights over the use of content in ways that are unauthorized or not anticipated under the current law.

To promote the authorized distribution of content through the GII, it is critical to ensure the protection of copyrights by way of, for example, preventing piracy. Exclusive rights of the copyright holder have to be fully respected to allow the marketplace to develop any legal licensing system which may-be appropriate for the GII. They should not be replaced by any non-voluntary or statutory licensing system. The following describes suggested themes in this area for further study:

• Responding to New Forms of Use under Copyright Law
  The large growth of network distribution, in addition to distribution of material copies of content, will result in a transformation in the types of uses of copyrighted works. Therefore, it is appropriate for the exclusive rights granted to the copyright holder under the existing copyright law for each country to be reviewed to deter mine whether current law provides adequate protection in this new environment. For example, the right to reproduce and rights to distribute, transmit, broadcast and display to the public will have to be examined in order to protect content adequately. The issue of moral rights also will need to be examined in connection with the increased possibilities for transformation by the user.
• Policy for Ensuring the Effectiveness of Copyright
  Various measures should be pursued to decrease the possibility of unauthorized reproduction, transformation or distribution of content.
  Following are issues to be studied: the proper scope of regulations to prevent the manufacture or distribution of devices designed to circumvent copyright protection mechanisms; voluntary copyright management information (CMI) mechanisms to facilitate the identification of the copyright holder to support licensing transactions, options for administration of such information and the establishment of voluntary clearance centers linked to each other and appropriate measures against unauthorized transformation and deletion of copyright management information.
• Importation of Copyrighted Works
  The GII will result in easier cross-border distribution of content. It is necessary to examine the appropriate measures to be taken against cross-border distribution of unauthorized copies. It may be appropriate to study, noting that cross-border distribution through the GII is technically much more difficult to monitor than with material copies, whether a right to import should be clarified or created.

3.2 Appropriate Balancing of the Rights and Interests among Participants in the GII

The further evolution of the information infrastructure will increase the environments where users can easily access and use vast amounts of varied content in new and valuable ways. Ensuring that users can take full advantage of such potential will contribute greatly to facilitating the use and development of the GII while supporting the existing intellectual property rights. Therefore, careful consideration must be given to enabling such conveniences for users while not prejudicing the rights of the owners of intellectual property rights in the content.

3.3 Global Harmonization

In resolving the above issues, including effective enforcement, all proposals must take into careful consideration the need for international harmonization, while also recognizing the differences in the legal system of individual nations. This should be accomplished in close cooperation with the business community.

Individual nations are encouraged to promote global harmonization in resolving the remaining intellectual property issues. Such efforts are best made in the context of multilateral negotiations, through WIPO, as an example. Achievement of global harmonization requires the developed countries to assist developing nations in their effort to establish their intellectual property rights systems.

3.4 Recommendations

• Ensure that content providers will be encouraged to make full use of the GII by fully implementing GATT TRIPS.
• Ensure the expansion, enhanced growth and use of the GII by enabling interoperability and convenience for users while respecting the rights and interests of all participants in the GII.
• Promote global harmonization in resolving any remaining intellectual property issues in the context of multilateral negotiations.

4. UNIVERSAL ACCESS

4.1 Objective

4.2 Basic Requirements

Only as new GII services are widely adopted should policy makers consider whether the marketplace has not achieved the goal of enabling all users to obtain essential GII services. It is premature today to identify any particular service beyond access to basic telecommunications networks, as a service that should be universally available.

Competition and open markets, combined with open access to communications networks, will provide the greatest assurance that the needs of most people to access information and communicate with others can be met via access to the GII in their homes, at work and in their communities. To the extent, however, that the marketplace fails to provide the desired results, new ways will have to be found to supplement and augment the market. Old ways of paying for subsidies simply will not work in the emerging era of competition and market-based pricing for services. If subsidies are required in the future, they should be paid for out of general government revenues and provided to the users who need assistance in securing access, rather than by payments to the access providers. At the very least, subsidies must be provided in an open and transparent process, in ways that do not distort the competitive markets in telecommunications services.

Access to the GII by people with disabilities is important to achieving the overall goals of universal access. Access for people with special needs is constantly improving, spurred by improvements in the technological capabilities of available equipment and software. Public funds can play an important role in stimulating investment in research and development of further improvements in access to the GII by the disabled community.

Directory information services may also be important in realizing the goals of universal access. Indeed, the extensive array of anticipated services suggests that directory information will be very important to be able to find the services offered. It is anticipated that the market will demand a wide array of directory services, and it is imperative that the marketplace be given a chance to respond to those demands without government mandate.

4.3 Recommendations

• With regard to telecommunications liberalization:
  • Give priority to competition in services throughout the telecommunications sector;
  • Abolish special and exclusive rights in telecommunications markets; and
  • Establish appropriate regulatory safeguards during the transition to full competition.
• Avoid premature designations of new "Universal Services"
  • Wait for the marketplace to develop and consider technical and economic feasibility before determining any new universal services obligations.
  • Competitive markets should be given a chance to work. Recognize that universal service obligations can be met without eliminating competition.
• If it is necessary to provide subsidies, they should be given to users, not service providers; subsidies should be funded only in ways explicitly intended to avoid distorting the market.
• Encourage frequent and extensive consultation and international cooperation among the wide range of users, service providers, governments and others who will have their own important roles to play in realizing universal access objectives.

5. ACCESS TO R&D AND NEW APPLICATIONS

Today, Information and Communications Technology research work is conducted along the entire value-added chain, with a special focus on solutions, which have a high inovation content in terms of the services they offer, the user needs .hey address and the technological tools they adopt.

Therefore, a broader vision of R&D is necessary and the focus must be moved further down the business cycle to the phases and projects directly involved with the user, including applications. It is the innovative application of technology, rather than the technology itself, that creates new markets and new jobs.

5.1 The need for technology cooperation

No single company in the world today is in a position to provide the full range of technologies and applications which private and public sector will need to operate efficiently in the new scenario. In many areas, it will be difficult - if not impossible - to advance technologies without the know-how of other companies regardless of nationality.

Today's technology is not limited to national boundaries; knowledge is spread across the world. R&D projects artificially limited to national boundaries tend to be constrictive and unrealistic.

The private sector should not be prevented by government policy from developing privately financed, multi-national consortia to develop the new technologies and applications for the Information Age. International R&D cooperation should be enhanced whether it comes from private initiatives or from government funded R&D programmes.

5.2 Access to government funded R&D and application development programmes

The principle of national treatment, i.e. non-discriminatory treatment regardless of nationality, is one of the pillars of the liberalization of the world economy. It is a well established legal standard, used in international treaties and other multilateral instruments.

There should be no difference of treatment between national entities and foreign-owned entities based in the country (or international organisation) funding the R&D. Exceptions may be considered for narrowly focussed, clearly defined national military programmes. Non-discriminatory treatment should be the aim. Multilateral action should be taken to remove conditional national treatment based on performance requirements such as local content, manufacturing and/or export requirements, as a condition of eligibility.

The only test for participation in government-funded R&D programmes should be whether the companies' participation confers a general economic benefit to the funding country, regardless of the nationality of such companies.

5.3 Ownership and exploitation of results of joint R&D programmes

The following conditions will create an environment in which participants with significant R&D activities and important intellectual property rights (IPR) are protected when joining government-sponsored joint R&D programmes:

• Background IPRs and information (i.e. previously existing IPR and information relevant to the joint R&D project) should be adequately protected;
• Ownership of IPR resulting from the joint R&D project (i.e. foreground IPR) resides with the participant responsible for the protected invention or creation. In the event that the creation or invention was developed by more than one participant, the IPR should be owned jointly, with each owner free to exploit or license the IPR outside of the project group, as it deems appropriate for its own business interests;
• Participants in the project should be free to assign ownership of foreground IPR and to transfer foreground information to affiliated companies;
• Each participant should be free to exploit and-license its own IPR as it deems appropriate without the requirment of mutual accounting to the other participants;
• Compulsory licensing requirements should be avoided for both background and foreground IPR and information, except that participants should be freely licensed with respect to each other's foreground IPR.

5.4 Open cooperation in application solutions

The content, approach and timing of applications will condition the shape and speed of growth of the Information Society.

Since Information Society is based on the principle of global communication, international cooperation should be encouraged to move beyond traditional R&D fields and to expand into the area of new applications.

This means that:

• Cooperation among companies from different countries for application development should be encouraged. One way to promote cooperation is for governments to pro cure applications through open tender. Preference should be given to application projects, that satisfy certain basic requirements:
  • promotion of the general interest at a global level, by highlighting the advantages of international cooperation;
  • involvement of different players from different countries;
  • respect for the different interests of the different players involved in the initiative;
  • promotion of global multimedia service networks which respect internationally agreed standards and regulatory frameworks for interoperability, privacy and data security and protection of intellectual property rights;
  • immediate implementation using existing resources, networks and technologies, to demonstrate that the Information Society is a reasonable goal for the present rather than for the future;
• Governments should create institutional communication channels with public authorities in other countries to ensure maximum circulation of information on the start-up of new R&D programmes and new applications used by governments for the information superhighways;
• Initiatives set up by providers and users in the private sector for the development of new applications should be encouraged.

5.5 Recommendations:

• Access to government funded R&D and application development programmes should be open to all entities contributing to the general economic benefit of the funding country or international organisation.
• For access to government funded R&D and application development programmes non-discriminatory treatment should be the aim. Multilateral action should be taken to remove conditional national treatment based on performance requirements such as local content, manufacturing and/or export requirements, as a condition of eligibility.
• Specific conditions should be created for protection of participants with significant R&D activities and important IPR, when joining government-sponsored joint R&D programmes.
• Governments should promote cooperative applications procured through open tender, which satisfy certain basic requirements, as specified in this paper.
• Governments should create institutional communication channels with public authorities in other countries to ensure maximum circulation of information on the start-up of new R&D programmes and new applications for the information superhighways.
• The private sector should not be prevented by government policy from developing privately-financed, multi-national consortia to develop the new technologies and applications for the Information Age.

6. MARKET ACCESS

Governments can best contribute to building the GII by promoting an environment of open competition. This involves eliminating the regulatory, trade, investment, and other barriers that stifle competition. Because the evolving GII involves not only the telecommunications sector, but also service providers and manufacturers of the hardware and software that create the physical networks, and the creation of content in its many forms, all these sectors must be open and competitive. Governments can also enhance market access through a commitment to national treatment, that should apply to all investors. A country that seeks to limit access to these markets will slow the rate of growth of its infrastructure and deprive its companies and citizens of the best products and services at the best price and undercut its competitiveness and quality of life. The -progress made at the General Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO) Uruguay Round is a good foundation for further progress.

6.1 Need for Telecommunications Liberalization

The global information technology industry is highly competitive and has a history of rapid technology advancement combined with continual improvements in price for performance. Expansion of regulations and maintenance of current barriers would be inappropriate for this industry, stifling investment and innovation and reducing consumers choice. Instead, the competitive information technology industry should serve as the model for a liberalized telecommunications marketplace. Reduction or elimination of telecommunications regulations will lead to faster deployment of the GII and are a necessity to satisfy the growing needs of global customers for end-to end solutions and services.

Existing telecommunications regulations should be changed or eliminated to promote market access and competition. Some particular opportunities include:

• Elimination of monopolies. State-owned or state-sanctioned monopolies should be eliminated.
• Equal access and interconnection. Competing telecommunications services and equipment providers must have the right to interconnect to public telecommunications transport facilities on equivalent terms and conditions.
• Market based pricing. Rates for network components and services provided by dominant telecommunications carriers should reflect the cost of providing the component or service and should not contain subsidies.
• Separate regulatory authority. Regulatory authorities should be separate from the providers that they regulate and should operate in an open and transparent manner.
• Cross-border roaming. The GII will become a reality only if wireless communications devices are able to operate across national borders.

6.2 Eliminating Barriers

6.2.1 Tariffs

6.2.2 Export Controls

6.2.3 Investment Barriers

6.2.4 Other Market Access Barriers

These and similar government barriers should be eliminated as soon as possible, in order to promote the free flow of goods and services on which the GII depends.

6.3 Value of Multilateral Agreements and Regional Developments Banks

Regional development banks, including the World Bank, the Inter-American Development Bank, the Asian Development Bank, African Development Bank and United Nations Development Pro gram should be encouraged to play a key role in promoting market access in countries receiving their assistance. The banks can do this by using their financial and technical resources to leverage the expansion of free and open markets in the economies they assist and by making the development of information infrastructures a high priority in these projects.

6.4 Recommendations

• The telecommunications sector must be liberalized;
• Customs tariffs for information technology and telecommunications technology products and components as well as semiconductors must be abolished;
• Export controls for information technology and telecommunications technology products should be eliminated at least for GII's largest markets, the OECD countries;
• Discriminatory investment barriers and procurement practices as well as technical barriers to access must be eliminated;
• Procedures and regulations have to be open and transparent and trade related administrative procedures should be harmonized consistent with GATT/WTO policies;
• The provisions and signatories to the GATT/WTO trade agreements should be broadened; OECD MIA negotiations should be concluded; and regional development banks should play a key role in promoting market access.

1 Although the ITU is a treaty based organization, it too relies on private sector consensus to develop its voluntary recommendations.

2 Information technology includes computers, computer assemblies, subassemblies, parts and components and computer software media.